Telling your story through non-financial reporting
Updated July 2010
Increasingly, the public want to know "what difference is your charity making?" This information sheet outlines some of the benefits and opportunities of answering that question by telling your charity's story through non-financial reporting.
Introduction
The answer to the question 'What difference does your charity make?' is becoming increasingly important to the public. As well as using your financial information, you may find it easier to answer this question by telling your story in a non-financial way.
This information sheet outlines some of the benefits and opportunities related to telling your charity's story through non-financial reporting.
It is intended to help you strengthen your connection with the public, funders and other supporters.
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Why is non-financial reporting important?
Although non-financial reporting isn't a requirement of the Charities Act, there is growing need for charities to report on the results of their work.
In 2008, we conducted a survey to learn about public trust and confidence in the charitable sector. The survey highlighted a number of issues relevant to the sector as a whole, as well as to individual charities.
It showed that people are more likely to give time and money if they trust, and feel connected to a particular charity.
People thinking about supporting a charity or using its services are likely to want to know what the charity does, who runs it, why its activities are needed, who benefits from its work and so on.
An example of the type of questions people might ask include,' What is your organisation working to change?' and 'What does this mean for the community?'
We can tell from the increasing number of unique visits to the Charities Register each month, that the public wants to know more about charities. They may be looking for information to help them make decisions about giving time, giving money, or before using the services of a charity.
Opportunities to receive donations electronically through payroll giving and online appeals place further importance on your charity's ability to tell its story.
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We presented information about non-financial reporting at a series of forums for charities, held across New Zealand. The presentations included an exercise that explored the types of questions people might ask before making a donation.
We made notes of the questions asked in each of the forums, to provide examples of the most 'typical' research questions likely to be asked by members of the public.
The ten most commonly asked questions are listed in the next column.
You may wish to develop your own answers to these questions, to use as a guide when telling your charity's story to the public, funders and other supporters.
Effectively answering these 'customer focused' questions can help strengthen the connection between a potential donor and your charity.
Also, by regularly reviewing your answers, you may find useful information that feeds into your operational and strategic plans.
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What do people want to know about your charity?
- Who are you and what do you do?
(Including: why were you set up? Who are your people? What services do you provide?) - Who do you help?
(Including: where and how many?) - Why should I give your charity money?
What makes it unique? - How will you use my donation?
- How do you measure your results?
(Including: who are you accountable to, and how are you accountable?) - What are the benefits to the community?
- Where is your charity based?
- How is your charity structured?
(Including: is it a registered charity? Are you a donee organisation?) - Is your charity sustainable?
(Including: who funds you right now? Why do you need more money?) - What is your vision, and what do you want to achieve?
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Where can you get more details about non-financial reporting?
Several local organisations have done work to develop non-financial reporting measures, as well as regular assessment of existing services.
This includes work by:
- ANGOA (Association of NonGovernmental Organisations Aotearoa) www.angoa.org.nz
- NZFVWO (New Zealand Federation of Voluntary Welfare Organisations) – for example, the VAVA research www.nzfvwo.org.nz
- Impact Research (Presbyterian Support Services) www.ps.org.nz
- NZICA (New Zealand Institute of Chartered Accountants) www.nzica.com
The Charities Commission website provides resources about strengthening communications and lists resources specific to nonfinancial reporting.
Our website will help you access case studies to learn from other charities, as well as tools and research from local and international sources. These resources can help you answer the ten questions we listed above and communicate effective non-financial information.
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You can display non-financial information:
- in an annual report or specialist outcomes report
- on your website
- in your newsletter or panui
- in regular update emails
- as part of a specific communication activity (campaign, DVD, group gathering)
- as part of a funding application.
Or, it can be displayed on the Charities Register as part of your Annual Return.
When you file your Annual Return with us you are asked to provide a copy of your financial statement. This gives you the opportunity to provide one document containing your financial statement.
However, if you wish, it can also include non-financial information – for example, it could include an executive summary or annual report.
Your non-financial information may give people more insight when they review your charity on the Register.
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Important note:
Including non-financial information together with your financial statement is voluntary; it is not a requirement of the Charities Act.
We accept one document only, and you may only submit this document as part of your Annual Return.
We suggest you limit the number of pictures and pages, as large file size may deter some readers from opening the information online.
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Summary
- People are more likely to give to a charity to which they feel connected.
- Payroll giving and online appeals place importance on non-financial reporting.
- Increased visits to the Charities Register imply people want more information about charities.
- Non-financial reporting is not a requirement of the Charities Act.
- Non-financial information can be displayed on the Charities Register.
- We can only accept one document with your Annual Return, so you must combine your financial statement and non-financial report into a single document.
- Our website includes resources and tools to help you develop non-financial reports.
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